Adaptation note: This story is adapted from similar matters handled by Lingtu Law and its peers. Names, places, dates and amounts have been changed, and the outcomes are presented as scenarios only. They do not reflect that similar cases will reach the same result.

Y is a nurse at a hospital in Los Angeles County. After her divorce in 2018 she raised two children on her own. She owned a townhouse, had a retirement account of a little over $200,000, and bought a $750,000 life insurance policy naming the two children as beneficiaries. Their father rarely visited, and his child support payments were irregular. In February 2026 Y was diagnosed with advanced pancreatic cancer. She died at home in mid-June 2026, and both children were still minors. The children could not receive the money directly. The insurer would not pay until a court appointed someone to manage the funds for the children. That person would have to report to the court every year, and when the court selected someone, the biological father was given priority. The remaining money would go to each child in a lump sum at age 18.

In 2024, while Y was still in good health, she came to us. Her biggest worry was that her father would control the money. We set up a trust with Y as trustee, and her sister would succeed her. The townhouse was transferred into the trust, and the life insurance and retirement account beneficiaries were changed to the trust, so the insurance proceeds would go directly into the trust, managed by her sister, without going through court and without involving the father. The children's money was divided into separate shares. Until age 18 it could pay for tuition, medical care, tutoring and living expenses as needed. The remaining funds would be distributed in thirds at ages 25, 30 and 35. In her will she named her sister as guardian, and the trust provided that payments could go directly to schools and doctors no matter where the children lived. After Y's death, the father asked to take the children. Her son was already sixteen and did not want to change schools. The family agreed the children would stay with their aunt, and the father could pick them up on weekends. Her sister signed an authorization so she could sign for school and medical matters. In July she applied to the insurer as successor trustee, and the insurer requested only the death certificate and the certificate of trust.

Date	Milestone
June 2024	Y consulted Lingtu Law
August 2024	Signed the trust and will; townhouse transferred; life insurance and retirement account beneficiaries changed to the trust
February 2026	Y diagnosed with advanced pancreatic cancer; treatment began
Mid-June 2026	Y died; children continued living with their aunt
July 2026	Sister sent trust notice and filed the insurance claim as successor trustee
Late August 2026	$750,000 insurance proceeds deposited into the trust
September 2026	Townhouse rented; rental income went into the children's sub-trust

In late August the $750,000 insurance payout was deposited into the trust. In September the townhouse was rented, and the rent was saved for the children. Their aunt keeps records of tuition, tutoring and living expenses each month, and the father has not handled any of the money.